Preliminary Economic Assessment Of The Silver Sand Deposit

VANCOUVER - New Pacific Metals Corp. announced the Preliminary Economic Assessment (PEA) study of the Silver Sand Project in Potosi Department, Bolivia. The PEA is based on the Mineral Resource estimate which was reported in November and is reported in accordance with National Instrument 43-101 (NI 43-101).

Highlights from the PEA, with a base case silver price of US$22.50/oz are as follows (all figures in US Dollars): Pre-Tax NPV (5%) of $1.1 billion and an IRR of 52%, and a Post-Tax NPV (5%) of $726 million and an IRR of 39%; Using a +/- 20% sensitivity analysis for silver price, Post-Tax NPV (5%) of $1,054 million and 50% IRR at US$27/oz silver and a Post-Tax NPV (5%) of $398 million and 26% IRR at US$18/oz silver; 14-year mine life producing approximately 171 million ounces total payable silver metal; Initial capital costs of $308 million, which includes $52 million in contingency costs; Life-of-mine ("LOM") sustaining capital costs total $20 million; Average LOM operating cash cost of US$8.45/oz and total all-in sustaining cost of US$10.42/oz silver; and Annual payable metal production exceeds 15 million ounces of silver in years one through four, with LOM average annual payable metal production exceeding 12 million ounces of silver.

"This study demonstrates that the Silver Sand Project can be developed into one of the world's largest silver mines with long life and robust economics. Its development will bring economic benefit to all stakeholders, including communities in Bolivia and shareholders of New Pacific" said Rui Feng, CEO and Founder. "We are very pleased with the results of this PEA.  Given the robust economic parameters of the Project, there is room to accommodate inflation pressure in capital or operating costs."